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Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting

Note 14.     Segment Reporting 

  

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include diagnostic and information technology-based products and services for the veterinary market, which we refer to as the Companion Animal Group (“CAG”), water quality products (“Water”) and diagnostic products and services for livestock and poultry health and to ensure the quality and safety of milk and food, which we refer to as Livestock, Poultry and Dairy (“LPD”). Our Other operating segment combines and presents products for the human point-of-care medical diagnostics market with our pharmaceutical product line and our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments.



Certain costs are not allocated to our operating segments and are instead reported under the caption “Unallocated Amounts”. These costs include costs that do not align with one of our existing operating segments or are cost prohibitive to allocate, which primarily consist of our R&D function, regional or country expenses, certain foreign currency revaluation gains and losses on monetary balances in currencies other than our subsidiaries’ functional currency and unusual items. Corporate support function costs (such as information technology, facilities, human resources, finance and legal), health benefits and incentive compensation are charged to our business segments at pre-determined budgeted amounts or rates. Differences from these pre-determined budgeted amounts or rates are captured within Unallocated Amounts.



Effective January 1, 2016, we modified our management reporting to the CODM to provide a more comprehensive view of the performance of our operating segments by including the capitalization of variances between standard and actual manufacturing costs, which adjusts the timing of cost recognition from when the variance is created to the period in which the related inventory is sold. Prior to January 1, 2016, the capitalization and subsequent recognition of these variances were not allocated to our operating segments and were instead reported under the caption “Unallocated Amounts”.



The segment gross profit and income (loss) from operations within this report for the quarter ended March 31, 2015 has been retrospectively revised to reflect the aforementioned changes to our segment performance metrics.



The following is a summary of segment performance for the three months ended March  31, 2016 and 2015 (in thousands):





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

For the Three Months Ended March 31,

 



 

 

CAG

 

Water

 

LPD

 

Other

 

Unallocated Amounts

 

Consolidated Total

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 357,639 

 

$

 23,552 

 

$

 30,856 

 

$

 5,503 

 

$

 -

 

$

 417,550 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

 61,378 

 

$

 9,679 

 

$

 4,570 

 

$

 (837)

 

$

 (997)

 

$

 73,793 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (7,484)

 

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 66,309 

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 20,284 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 46,025 

 

Less: Net income attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 6 

 

Net income attributable to IDEXX  Laboratories, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 46,019 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 324,531 

 

$

 21,698 

 

$

 31,270 

 

$

 4,978 

 

$

 -

 

$

 382,477 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

 53,518 

 

$

 9,361 

 

$

 6,956 

 

$

 (322)

 

$

 3,290 

 

$

 72,803 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (5,879)

 

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 66,924 

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 20,346 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 46,578 

 

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (16)

 

Net income attributable to IDEXX  Laboratories, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 46,594 

 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



The following is a summary of revenue by product and service category for the three months ended March  31, 2016 and 2015  (in thousands): 



 

 

 

 

 

 



 

For the Three Months Ended



 

March 31,



 

 

 2016 

 

 

 2015 

CAG segment revenue:

 

 

 

 

 

 

CAG Diagnostics recurring revenue:

 

$

 305,510 

 

$

 278,766 

IDEXX VetLab® consumables

 

 

 107,959 

 

 

 98,392 

IDEXX VetLab service and accessories

 

 

 13,757 

 

 

 13,530 

Rapid assay products

 

 

 43,086 

 

 

 43,637 

Reference laboratory diagnostic and consulting services

 

 

 140,708 

 

 

 123,207 

CAG Diagnostics capital - instruments

 

 

 22,974 

 

 

 20,113 

Customer information management and diagnostic imaging systems

 

 

 29,155 

 

 

 25,652 

CAG segment revenue

 

 

 357,639 

 

 

 324,531 



 

 

 

 

 

 

Water segment revenue

 

 

 23,552 

 

 

 21,698 

LPD segment revenue

 

 

 30,856 

 

 

 31,270 

Other segment revenue

 

 

 5,503 

 

 

 4,978 

Total revenue

 

$

 417,550 

 

$

 382,477